Goods supplied by A to B in the month of August 2017
Value of goods = 1,000/-
GST = 200/-
A does not declare the details of such supplies in FORM GSTR-1.
B claims input tax deduction of 200 by adding the details of such supply in
FORM GSTR-2.
A rejects the communication in FORM GSTR-1A.
The department issues FORM GST MIS-1 to the supplier and FORM GST MIS-2 to the recipient in the month of September 2017.
The supplier does not rectify the discrepancy by September 2017.
The department adds 200 to the output tax liability of B for the month of
October 2017.
B is liable to pay 200 along with interest for the period August 2017 to October 2017.
A rectifies the discrepancy in the month of December 2017.
B can reduce output tax liability for January 2017 by 200. B will also be eligible for refund of interest paid earlier.
(ICAI FAQ PUBLICATIONS 06-09-2017 RETURNS : FAQ NO.39)